Accounting
- process of recording, classifying, summarizing in a significant manner and in terms of money, transactions, and events which are in part at least, of financial character, and interpreting the results thereof
Bookkeeping
- process of recording the accounts of transactions of an entity
- process of keeping records
Accounting
- covers the whole process of identifying, recording, and communicating information to interested users
- bookkeeping is under here
Accounting
- covers the fields of accounting that an accounting graduate can specialize into
Accountancy
- embraces the accounting profession
Recording
- writing down of the business transactions in a record book
General Journal
- record book where business transactions are written down
Classifying
- process of arranging or organizing transactions in classes of categories
Summarizing
- summing up of events to find the total so that financial statements can be prepared
Interpreting
- process where in accounting helps in explaining the meaning and significance of the data in the accounting repors in simplified form
Service Business
- business tha offer service as their main product
school, hospital, hotel, consultation, cleaning
Merchandising
- buys and sells goods without changing their physical form
supermarket, hardware stores, pharmacies, bookstores
Trading
- other term for merchandising business
Manufacturing
- buys raw materials and processes them into final products
- changes the physical form of the goods it has purchased in a production process
bakery, restaurant, factories
Single/Sole Proprietorship
- owned by only one individual
- most common and simplest form of a business organization
Department of Trade and Industry
- where single proprietorship is registered
Partnership
- owned by two or more individuals
- enter into a contract to carry on the business and divide among themselves
Partners
- term used to call people in partnerships
Securities and Exchange Commission
- where partnerships are registered
Corporation
- owned by five or more people
- represented by shared of stock. Created by operation of law, thus having a juridical personality
Stockholders
- term used to describe the people who own a corporation
Securities and Exchange Commission
- where corporations are registered
Cooperative
- owned by 15 or more people
- formed in accordance with the provisions of the Philippine Cooperative Code of 2008
Members
- term used to call people who own a cooperative
Cooperative Development Authority
- where cooperatives are registered
Language of Business
- accounting is called ___ because financial information are communicated to interested users in the form of financial statements
Financial Accounting
- branch in accounting that focuses on general purpose financial statements
Management Accounting
- branch in accounting involved in the accumulation and communication of information for use by internal users
- special purpose financial reports
Government Accounting
- branch in accounting that focuses attention on the custody of public funds
Auditing
- branch in accounting involved in the inspection of entity’s financial statements or business processes
- expression of an opinion (auditor’s report)
Tax Accounting
- branch in accounting involved in the preparation of tax returns and rendering of tax advice
Cost Accounting
- branch in accounting involved in the systematic recording and analysis of the cost of materials, labor, etc. to the production of goods
Cost Accounting
- often in manufacturing firms
Accounting Education
- branch in accounting that teaches accounting in an organized environment
Accounting Research
- branch in accounting involved in the careful analysis of economic events and other variables to understand their impact or decisions
- may be related to one or more of the other accounting branches-
Forensic Accounting
- branch in accounting that uses accounting skills to investigate fraud or embezzlement
Accounting Period
- length of time that covers the business transactions being reported upon, usually has a period of one year
Calendar Year
- 12 months, starting on January 1 and ending on December 31
Fiscal Year
- any succession of 12 months, starting on any month except January and ending on any month except December